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Difference between investment banks and hedge funds?

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Lloyd Blankfein

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Can someone explain to me in simple terms what's the difference between investment banks and hedge funds? Do hedge funds or other investment management companies have long work hours like IBs (if you don't work as a trader)?
 
Lloyd Blankfein said:
Can someone explain to me in simple terms what's the difference between investment banks and hedge funds? Do hedge funds or other investment management companies have long work hours like IBs (if you don't work as a trader)?
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Lloyd, i hope you see the irony in that question?

McLovin could give you the best answer, from experience.
 
Lloyd Blankfein said:
Can someone explain to me in simple terms what's the difference between investment banks and hedge funds? Do hedge funds or other investment management companies have long work hours like IBs (if you don't work as a trader)?
Click to expand...

IB's generally facilitate deals ie ABC Ltd wants to buy XYZ or help companies raise capital (debt or equity). They usually also have some sort of dealing room which is both to trade on their own account and to assist their clients (selling new equity, buying shares on behalf of client). Hedge funds work for themselves and are basically hotted up fund managers. In fact, some of them are so large now that they are more like fund managers. Hedge fund seems to be the in vogue word at the moment, even the loan shark out the back of Star City is probably calling himself a distressed debt hedge fund.

You work like a Japanese beaver at both of them, especially when a deal is on. If you're looking for 9-5 then neither is going to give you that. At a hedge fund though, you probably do less travel than you would at an IB. I remember back in 2006/2007 Macquarie was flying young associates over to London for two week stints working there because they couldn't get the staff in London. And my personal favourite was getting approval to fly a bunch of PwC grads from NYC to Eastern Europe to do data entry, and flying them back to NYC every fortnight for the weekend.:D I think those sort of glory days are well and truly over.
 
McLovin said:
And my personal favourite was getting approval to fly a bunch of PwC grads from NYC to Eastern Europe to do data entry, and flying them back to NYC every fortnight for the weekend.:D I think those sort of glory days are well and truly over.
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Yup. Plus they all stayed at 5 star hotels and had $35 meal allowance everynight (which $10 went to food and $25 to drinks). No wonder the restaurant trade suffers in a downturn.
 
skc said:
Yup. Plus they all stayed at 5 star hotels and had $35 meal allowance everynight (which $10 went to food and $25 to drinks). No wonder the restaurant trade suffers in a downturn.
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Having worked within a bank for a short while - there is still some of this stuff going on...however its not as flambuoyant as above :eek: Sounds like I missed the glory days...
 
skc said:
Yup. Plus they all stayed at 5 star hotels and had $35 meal allowance everynight (which $10 went to food and $25 to drinks). No wonder the restaurant trade suffers in a downturn.
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My top allowance was GBP 62.50...Considering the cost of food in most of the places I went to (soup, steak and a beer for GBP 4), I used to make a massive profit on my per diem. Of course the guys who spent most of their time in Switzerland never fared as well.
 
McLovin said:
My top allowance was GBP 62.50...Considering the cost of food in most of the places I went to (soup, steak and a beer for GBP 4), I used to make a massive profit on my per diem. Of course the guys who spent most of their time in Switzerland never fared as well.
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We only get expenses and no per diem so no profit to be made... :cool:
 
Do any of you fella's have hands on experience in the hedge fund scene?

I'm currently completing my finance degree and will eventually be looking to go towards the hedge funds and potential investment banking. I'm looking for admin/data entry/entry level roles (and possibly settlements if no experience is required) in order to get into the door.

Could you share any advice, experiences, anything and everything on investment banks and hedge funds when it comes to a young bloke looking to work?

Thanks all

Daniel
 
CanOz said:
Lloyd, i hope you see the irony in that question?
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Lol obvious I'm not the real guy lol.

Hey thanks for the replies. I don't want long work hours to destroy my life, 9-5 is the max I'm going to work unless I'm working at home. I'm a math graduate with quant skills, and looking to become successful in life. Ultimate dream is something like starting a hedge fund with other people having business skills and grow it to a multi billion dollar corporation. I know that's too unrealistic, but I want to have it as one of my options to become successful. I think starting a business is the best way to become successful but I need to team up with people with marketing/management skills etc. Right now I'm looking for a job to gain experience and hopefully meet up with people with Steve-Jobs-business-skills, lol.

Do you have any suggestions for me?
 
Lloyd Blankfein said:
Hey thanks for the replies. I don't want long work hours to destroy my life, 9-5 is the max I'm going to work unless I'm working at home. I'm a math graduate with quant skills, and looking to become successful in life. Ultimate dream is something like starting a hedge fund with other people having business skills and grow it to a multi billion dollar corporation. I know that's too unrealistic, but I want to have it as one of my options to become successful. I think starting a business is the best way to become successful but I need to team up with people with marketing/management skills etc. Right now I'm looking for a job to gain experience and hopefully meet up with people with Steve-Jobs-business-skills, lol.

Do you have any suggestions for me?
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Mate I like your big thinking but NO ONE has ever done what you have listed working 9 to 5. In fact you don't become successful in these things unless they are your whole entire nothing else rates a mention life.

You should start a plan B!
 
Others may have an opposing opinion. But in my world success and "I don't want long work hours to destroy my life, 9-5 is the max I'm going to work unless I'm working at home" are polar opposites.

To be successful, in whatever you want takes a ton of hard work, end of story.

Once you are successful and can employ good people, then you can think 9 to 5.

If you want to be successful, expect your job to BE your life for a good part of it.

Edit: TH beat me to it as i took a call in the middle of my post...lol
 
Advice

Read " Wolf of Wall Street "

Then hop on a kite to NY
Invest $10k in NY and look sharp.
Mingle with those who are in the know.
Find where they drink and NETWORK.

Nothing will happen here----not on
That level --- ever.

While quant will be handy street wise will
Need to be your next degree.
 
Trembling Hand said:
Mate I like your big thinking but NO ONE has ever done what you have listed working 9 to 5. In fact you don't become successful in these things unless they are your whole entire nothing else rates a mention life.

You should start a plan B!
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Yea I get what you mean. I guess I want to enjoy some life right now before I get into it, I don't want to work as hard as Steve Jobs just yet. I definitely have a plan B if I can't get big, and that's to live a normal life like everyone else. But I guess luck also plays a role - Snapchat's CEO Spiegel lolz.

Can you recommend some types of jobs that suits quants like me and allows me to network with big people?
 
Can you recommend some types of jobs that suits quants like me and allows me to network with big people
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Nothing here --you'll need to be in Honkers/NY or London.
You'll need to get a job in the quant tank of preferably the best (As in leading edge) hedge fund you can get involved with.
Get noticed--9-5 wont do it---no sleep probably will.
Get Head Hunted
Get single if you aren't already.
 
Lloyd Blankfein said:
Yea I get what you mean. I guess I want to enjoy some life right now before I get into it, I don't want to work as hard as Steve Jobs just yet. I definitely have a plan B if I can't get big, and that's to live a normal life like everyone else. But I guess luck also plays a role - Snapchat's CEO Spiegel lolz.

Can you recommend some types of jobs that suits quants like me and allows me to network with big people?
Click to expand...

I know a few guys who work for a market making firm, starts with an O and is from the Netherlands, they actually do seem to work 9-5.

The test to get in ain't no cakewalk though.
 
McLovin said:
I know a few guys who work for a market making firm, starts with an O and is from the Netherlands, they actually do seem to work 9-5.

The test to get in ain't no cakewalk though.
Click to expand...

Yeah there is plenty here. Tibra, Optiver, Timber Hill, Merrill control the spi with algos, Kaiser, MW Markets, etc etc.

Get on linkedin and look. Plenty of headhunters there.

Oh and I would try Singapore before Tokyo and Hong Kong.
 
McLovin said:
I know a few guys who work for a market making firm, starts with an O and is from the Netherlands, they actually do seem to work 9-5.

The test to get in ain't no cakewalk though.
Click to expand...

Thanks for the info. I didn't really know to have big success an absolute necessity is sacrificing my whole life (ignorant me lolzzz), or just get super lucky like Snapchat or win lottery. Thanx to you guys for telling me. I have to think more, I still have my big dream but I need to plan more realistic approaches as well.
 

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